Question: The last two decades have taught us that when it comes to financial deregulation, it is possible to have too much of a good thing

The last two decades have taught us that when it comes to financial deregulation, it is possible to have too much of a good thing too quickly. Financial deregulation has often taken place indiscriminately without proper consideration of risks associated with the unfettered actions of borrowers and lenders. Compare and contrast less government intervention in the financial market and more intervention. Does deregulation lead to more economic growth and stability? If so then how and if it doesn't then why doesn't it?

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The debate around financial deregulation has been ongoing for decades with proponents arguing that it leads to more economic growth and stability while opponents claim that it can create risks and ins... View full answer

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